Summary
A 35-year-old male applicant sought a security clearance under Guideline F (Financial Considerations), despite admitting to over $36,000 in delinquent debts. The Statement of Reasons detailed several financial issues, including a $6,443 tax lien from State A in October 2012, and allegations of untimely tax filings for State A in 2010 and the IRS in 2011. Other debts included a $98 charge for an unreturned cable box, a $404 medical bill from a 2012 emergency room visit not covered by insurance due to late paperwork, and a $492 fee for the remaining balance on a terminated cell phone service. Additionally, a $3,346 balance remained on an automobile loan after his car was totaled by an uninsured driver.
The judge acknowledged that many of the applicant's financial problems stemmed from circumstances beyond his control, such as a fiancée's medical condition and the car accident. The applicant demonstrated significant efforts to resolve these issues, including establishing payment plans and addressing debts through garnishment.
Ultimately, the applicant established a reasonable plan to repay his delinquent debts and showed a good-faith effort to manage his finances responsibly. Based on these mitigating factors, the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant established a reasonable plan to repay his delinquent debts.
- The financial issues were largely due to circumstances beyond his control, including a fiancée's medical condition and a car accident.
- The applicant demonstrated a good-faith effort to resolve his debts and manage his finances responsibly.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An applicant does not have to be debt-free in order to qualify for a security clearance. Rather, all that is required is that an applicant act responsibly given his circumstances and develop a reasonable plan for repayment, accompanied by 'concomitant conduct' that is, actions which evidence a serious intent to effectuate the plan.”
Procedural Posture
- SOR issuedNov 3, 2015
- Answer filedDec 8, 2015
- Hearing heldMar 7, 2017
- Decision dateApr 13, 2017
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control in Financial Matters
- Good-faith Efforts to Resolve Debts as a Basis for Granting Security Clearance